On August 27, we blogged about the Ninth Circuit unpublished panel opinion in Kivett v. Flagstar Bank issued upon remand of the case from the Supreme Court with instructions to follow the guidance of the Supreme Court contained in its unanimous opinion in Cantero v. Bank of America. In Cantero, the Supreme Court reversed a Second Circuit opinion which had held that the National Bank Act preempted a New York State law requiring the payment of 2% interest on residential mortgage escrow accounts.… Continue Reading
NCLC Asks CFPB to Consider Residential Leases as Credit for Specific Purposes
Posted in CFPB, CFPB Rulemaking
The National Consumer Law Center is asking the CFPB, by way of a petition, for rulemaking that is long on policy arguments but woefully short on legal support, as we note below, to define residential leases as “credit” under the Equal Credit Opportunity Act (ECOA) and landlords as “creditors” for two purposes.… Continue Reading
CFPB files its reply brief in support of the CFPB’s motion to dissolve the preliminary injunction in the credit card late fee lawsuit
On August 22, 2024, the CFPB filed its reply brief in support of its motion to dissolve the preliminary injunction and lift the stay of the CFPB’s credit card late fee final rule (“Rule”) in the lawsuit challenging the Rule.
On May 10, 2024, in issuing the preliminary injunction, Judge Pittman found that the plaintiffs had established a likelihood of success on the merits based solely on the Fifth Circuit’s decision in CFSA v.… Continue Reading
Consumer groups show support of CFPB’s Auto Finance Data Pilot and urge the Bureau to expand its data collection
Posted in Auto Finance, CFPB
In February 2023, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) announced an auto finance data pilot, where it ordered nine large auto lenders to provide information about their auto lending portfolios. These lenders consisted of banks, finance companies, and captive lenders (manufacturer-owned finance companies that generally provide below-market interest rate auto financing to consumers).… Continue Reading
CFPB Issues Initial Filing Instructions Guide for Nonbank Enforcement Order Registry
By Richard J. Andreano, Jr. on
As previously reported, in June 2024 the CFPB issued a final rule creating a Nonbank Enforcement Order Registry. The rule is effective on September 16, 2024, with registrations available beginning on October 16, 2024 pursuant to a tiered implementation approach.
The CFPB has now released the initial version of a Filing Instructions Guide (FIG) that provides details on how to submit information to the Nonbank Registry Portal (Portal).… Continue Reading
Unlawful funding argument raised in challenge to final CFPB rule
By Alan S. Kaplinsky on
We have previously blogged about how targets of CFPB enforcement actions have asserted that the actions must be dismissed because the investigations were conducted and the lawsuits were brought and are being prosecuted with funds unlawfully obtained from the Federal Reserve Board at a time when the Federal Reserve System had no combined earnings.… Continue Reading
CFPB, Credit Repair Cloud Reach Deal Over Illegal Marketing Allegations
By John L. Culhane, Jr. & Jenny N. Perkins on
Posted in CFPB
The CFPB and Credit Repair Cloud, have reached agreement over allegations that the firm helped other credit repair businesses charge illegal fees to consumers.
If approved by a federal judge in the Central District of California, the company would pay a $1 million penalty and its CEO, Daniel A. Rosen would pay a $2 million civil penalty.… Continue Reading
CFPB files its reply brief in support of the CFPB’s motion to dismiss Plaintiff Fort Worth Chamber and transfer the case to D.D.C.
On August 19, 2024, the CFPB filed its reply brief in support of the CFPB’s motion to dismiss Plaintiff Fort Worth Chamber of Commerce (Fort Worth Chamber) for lack of standing and, if granted, transfer the case to the Federal District Court for D.C. in the lawsuit challenging the CFPB’s credit card late fee final rule (“Rule”).… Continue Reading
CFPB Releases Updated 1071 Filing Instructions Guide
On August 16, 2024 the CFPB issued an updated 2025 Small Business Lending Filing Instructions Guide (the “Guide”). The Guide provides updated compliance dates that correspond to the new compliance dates.
As a refresher, the CFPB previously issued an Interim Final Rule extending the compliance dates for the Small Business Lending Rule in light of the Supreme Court’s decision finding the funding structure of the CFPB to be constitutional in CFPB v.… Continue Reading
CFPB files and prosecutes yet another enforcement lawsuit using funds obtained in violation of the CFPB’s enabling statute (Dodd-Frank Act) and the Constitution
By Alan S. Kaplinsky on
The Introduction to the Complaint which was filed by the CFPB on May 17, 2024 against Solo Funding, Inc. in the United States District Court for the Central District of California – Western Division Los Angeles (Judge R. Gary Klausner) describes the CFPB’s claims as follows:
INTRODUCTION
- The Consumer Financial Protection Bureau (“Bureau”) brings this action under §§ 1031, 1036(a), 1054, and 1055 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C.